While the exact process might vary slightly from insurer to insurer, there are five steps that you can typically expect when applying for life insurance:

1. Submit an initial application.ÂIn order to obtain life insurance, you must qualify by submitting an initial application that covers general information (e.g. proof of identity, contact information, proof of financial situation), your personal and familial medical history (e.g. surgical history, medical diagnoses), and your lifestyle (e.g. smoking habits, hazard level of your occupation).
2. Participate in a phone screening.ÂAfter your initial application is reviewed, they’ll often follow up with a phone call where they confirm the provided information and discuss more questions related to your health and lifestyle.
3. Receive a medical exam.ÂWhile not required by all insurance policies, many require an additional medical examination. This can include everything from the basics of weight and height to blood tests and even drug tests.
4. Wait.ÂYour insurance company will also likely perform a soft credit check, pull your motor vehicle report, and check your prescription history. This and the previously gathered information will be used in the underwriting process to determine your final rating.
5. Confirm and sign your policy.ÂIf no other issues arise, then you just need to confirm and sign your policy!

Remember, once you finalize how much life insurance you need and your rate, you must keep paying your premium to keep the coverage in place.

How does life insurance work when I die?

After you pass away, your beneficiary must file a claim with the life insurance company and submit relevant documentation, such as a death certificate. The beneficiary may choose how the death benefit will be paid out to them — either via lump sum or annual payments. Each life insurance payment option is paid out tax-free.

What does life insurance cover?

Most causes of death are covered by life insurance, including natural causes, accidents, and illness.  Application fraud is the most common reason for denial of life insurance claims. See what is and isn’t typically covered by life insurance below.

What Life Insurance Covers

• Terminal illness
• Critical illness
• Chronic Illness

Qualifying Critical Illnesses

1. Invasive life-threatening cancer (In CA, invasive/metastatic cancer)
2. Stroke
3. Major heart attack
4. End-stage renal failure
5. Major organ transplant
6. Amyotrophic lateral sclerosis (ALS)
7. Blindness due to diabetes
8. Paralysis of two or more limbs
9. Major burns
10. Coma
11. Aplastic anemia
12. Benign brain tumor
13. Aortic aneurysm
14. Heart valve replacement
15. Coronary artery bypass graft syrgery

Qualifying Chronic Illnesses

1. Inability to perform at least 2 activities of daily living for at least 90 days
2. Sever cognitive impairment

Qualifying Terminal Illnesses

1. Any condition for which the doctor has certified is terminal, meaning the insured has a life expectancy of less than 12 months.

What Life Insurance Typically Does Not Cover

• Suicide within two years of the policy being issued
• Murder of the policyholder by a beneficiary
• War, work or lifestyle related exclusions